Benchmark Electronics Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 4 November 2025: press release. Guidance figures: 5 new. The quarter’s numbers.

Key takeaways

Revenue grew 3.5% year over year: Revenue was $681 million, up from $658 million a year earlier and $642 million in the June quarter. Source
Diluted EPS rose from prior quarter: GAAP diluted EPS was $0.39, against $0.03 in the June quarter and $0.42 a year earlier. Non-GAAP diluted EPS was $0.62, against $0.55 and $0.57. Source
A&D and Medical grew most: A&D revenue was $129 million, up from $102 million a year earlier. Medical was $126 million, up from $107 million. Source
Bookings momentum continued in quarter: Management said bookings momentum continued in the third quarter, reinforcing the strength seen earlier in the year. Source
Non-GAAP operating margin rose: Non-GAAP operating margin was 4.8%, up from 4.7% in the June quarter and down from 5.3% a year earlier. Source
Operating cash flow turned positive: Operating cash flow was $36.6 million in the quarter, against negative $2.8 million in the June quarter. Free cash flow was $25.1 million. Source

“During the quarter we saw improved year-over-year performance across the majority of our market sectors and I am encouraged by indicators pointing to stronger growth as we exit the year”
Jeff Benck, Benchmark’s CEO

Guidance

Area	Period	Figure	Against last quarter
Revenue Source	Fourth quarter 2025	$670 million - $720 million	New
Diluted GAAP earnings per share Source	Fourth quarter 2025	$0.44 - $0.50	New
Diluted non-GAAP earnings per share Source	Fourth quarter 2025	$0.62 - $0.68	New
Stock-based compensation excluded from non-GAAP EPS Source	Fourth quarter 2025	approximately $2.3 million	New
Other non-operating expenses excluded from non-GAAP EPS Source	Fourth quarter 2025	$4.9 million to $5.3 million	New

What changed from last quarter

New guidance: Fourth quarter 2025 guidance was given in this release; the previous release gave third quarter 2025 guidance. Source
New: Enterprise AI opportunities described as in the beginning stages of ramping; the previous release did not mention them. Source

Results and growth drivers

Revenue grew 3.5% year over year: Revenue was $681 million, up from $658 million a year earlier and $642 million in the June quarter. Source
Diluted EPS rose from prior quarter: GAAP diluted EPS was $0.39, against $0.03 in the June quarter and $0.42 a year earlier. Non-GAAP diluted EPS was $0.62, against $0.55 and $0.57. Source
Non-GAAP operating income rose sequentially: Non-GAAP income from operations was $32.6 million, up from $30.1 million in the June quarter and down from $34.9 million a year earlier. Source
Nine-month net income fell: Nine-month GAAP net income was $18.9 million against $44.9 million. Nine-month income tax expense was $26.7 million against $15.1 million. Source

Segments and end markets

A&D and Medical grew most: A&D revenue was $129 million, up from $102 million a year earlier. Medical was $126 million, up from $107 million. Source
AC&C rose from June quarter: AC&C revenue was $88 million, up from $74 million in the June quarter and down from $110 million a year earlier. Source
Semi-Cap little changed year over year: Semi-Cap revenue was $185 million, down from $188 million a year earlier and $190 million in the June quarter. Its share of revenue was 27%. Source
Industrial near prior-year level: Industrial revenue was $153 million, up from $151 million a year earlier and $142 million in the June quarter. Source

“Our bookings momentum continued in the third quarter of 2025, reinforcing the strength we’ve seen all year.”
David Moezidis, President and Chief Commercial Officer

Demand and bookings

Bookings momentum continued in quarter: Management said bookings momentum continued in the third quarter, reinforcing the strength seen earlier in the year. Source
Enterprise AI ramp in beginning stages: Management described enterprise AI as in the beginning stages of ramping, as an indicator of growth as the year ends. Source
Year-over-year gains in most sectors: Management said performance improved year over year across most market sectors during the quarter. Source

Margins

Non-GAAP operating margin rose: Non-GAAP operating margin was 4.8%, up from 4.7% in the June quarter and down from 5.3% a year earlier. Source
GAAP operating margin rose: GAAP operating margin was 3.5%, up from 3.2% in the June quarter and down from 4.3% a year earlier. Source
Gross margin nearly unchanged: GAAP gross margin was 10.0%, against 10.1% in the June quarter and 10.1% a year earlier. Source

Costs and operating expenses

GAAP SG&A rose on quarter: GAAP selling, general and administrative expenses were $41.5 million, up from $40.6 million in the June quarter and $36.6 million a year earlier. Source
Stock-based compensation rose: Stock-based compensation expense was $5.3 million in the quarter, against $4.4 million a year earlier. Nine-month expense was $15.1 million against $10.7 million. Source
Mexico tax settlement in legal line: Legal and other settlement loss was $0.8 million in the quarter and $11.9 million for nine months, including a Mexico tax assessment settlement. Source

Cash flow and working capital

Operating cash flow turned positive: Operating cash flow was $36.6 million in the quarter, against negative $2.8 million in the June quarter. Free cash flow was $25.1 million. Source
Nine-month free cash flow lower: Nine-month free cash flow was $37.3 million against $119.1 million a year earlier. Nine-month capital expenditures were $28.0 million against $24.2 million. Source
Cash conversion cycle shortened: Cash conversion cycle was 77 days, against 85 days in the June quarter and 90 days a year earlier. Inventory days fell to 75 from 83. Source

Capital and balance sheet

Share repurchases rose in nine months: Nine-month share repurchases were $26.0 million, against $5.1 million a year earlier. Net debt activity was a $41.4 million outflow. Source
Cash and debt balances declined: Cash and cash equivalents were $285.4 million at September 30, 2025, against $315.2 million at December 31, 2024. Long-term debt was $212.6 million, against $250.5 million. Source
Equity slightly lower: Shareholders’ equity was $1,109.3 million, against $1,113.3 million at December 31, 2024. Total assets were $2,067.3 million. Source

Coming up, as management said on 4 November 2025

Growth expected into 2026: Management said the bookings trend positions the company for continued growth as it looks to 2026 and beyond. Source

Figures management reported

Figure	Reported
Semi-Cap revenue Source	$185 million, 27% of revenue
Industrial revenue Source	$153 million, 22% of revenue
A&D revenue Source	$129 million, 19% of revenue
Medical revenue Source	$126 million, 19% of revenue
AC&C revenue Source	$88 million, 13% of revenue
Gross margin, GAAP Source	10.0%
Gross margin, non-GAAP Source	10.1%
Days in inventory Source	75
Days in cash conversion cycle Source	77

Risks management discussed

Financial: Discrete tax charges of $0.8 million in the quarter and $11.3 million for nine months relate to foreign withholding tax and deferred tax on China unremitted earnings. Source
Operational: Restructuring charges and other costs of $1.2 million in the quarter were excluded from non-GAAP results. Source

Earlier plans management reported on

Met: Management said the company achieved the high end of its guidance range for revenue and non-GAAP EPS in the third quarter. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

BENCHMARK REPORTS THIRD QUARTER 2025 RESULTS

TEMPE, AZ, November 4, 2025 - Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the third quarter ended September 30, 2025.

Third quarter 2025 results:

Revenue of $681 million, up 3.5% year-over-year

GAAP Operating Income of $24 million

Non-GAAP Operating Income of $33 million

Diluted GAAP earnings per share of $0.39

Diluted non-GAAP earnings per share of $0.62

“I am proud of our execution in the third quarter as we achieved the high end of our guidance for revenue and non-GAAP earnings per share,” said Jeff Benck, Benchmark’s CEO.

Benck continued “During the quarter we saw improved year-over-year performance across the majority of our market sectors and I am encouraged by indicators pointing to stronger growth as we exit the year, including the beginning stages of our ramping enterprise AI opportunities.”

David Moezidis, President and Chief Commercial Officer, further added "Our bookings momentum continued in the third quarter of 2025, reinforcing the strength we’ve seen all year. This trajectory positions us well for continued growth as we look to 2026 and beyond."

	Three Months Ended
Summary GAAP Items	September 30,	June 30,	September 30,
(Amounts in millions, except per share data)	2024	2025	2025
Revenue	$658	$642	$681
Gross Margin	10.1%	10.1%	10.0%
Operating Margin	4.3%	3.2%	3.5%
Diluted EPS	$0.42	$0.03	$0.39

	Three Months Ended
Summary Non-GAAP Items	September 30,	June 30,	September 30,
(Amounts in millions, except per share data)	2024	2025	2025
Revenue	$658	$642	$681
Gross Margin	10.2%	10.2%	10.1%
Operating Margin	5.3%	4.7%	4.8%
Diluted EPS	$0.57	$0.55	$0.62

A reconciliation of non-GAAP results to the most directly comparable GAAP measures and a discussion of why management believes these non-GAAP results are useful are included below.

Third Quarter 2025 Industry Sector Revenue Update

	September 30,		June 30,		September 30,
(In millions)		2024		2025		2025
Semi-Cap	$188	28%	$190	30%	$185	27%
Industrial	151	23	142	22	153	22
A&D	102	16	126	20	129	19
Medical	107	16	110	17	126	19
AC&C	110	17	74	11	88	13
Total	$658	100%	$642	100%	$681	100%

Cash Conversion Cycle

	September 30,	June 30,	September 30,
	2024	2025	2025
Days in accounts receivable	51	52	50
Days in contract asset	26	25	26
Days in inventory	89	83	75
Days in accounts payable	(54)	(55)	(56)
Days in advance payments from customers	(22)	(20)	(18)
Days in cash conversion cycle	90	85	77

Fourth Quarter 2025 Guidance

Revenue between $670 million - $720 million

Diluted GAAP earnings per share between $0.44 - $0.50

Diluted non-GAAP earnings per share between $0.62 - $0.68

Non-GAAP earnings per share guidance excludes stock-based compensation expense of approximately $2.3 million and other non-operating expenses of $4.9 million to $5.3 million which includes restructuring, amortization of intangibles and other expenses.

Third Quarter 2025 Earnings Conference Call

The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company’s website at www.bench.com. A replay of the broadcast will also be available on the Company’s website.

About Benchmark Electronics, Inc.

Benchmark provides comprehensive solutions across the entire product lifecycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain, and delivering world-class manufacturing services in the following industries: advanced computing and communications (AC&C), aerospace and defense (A&D), industrial, medical, and semiconductor capital equipment (Semi-Cap). Benchmark’s global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.

For More Information, Please Contact:

Paul Mansky, Investor Relations and Corporate Development

1-623-300-7052 or paul.mansky@bench.com

Forward-Looking Statements

Forward-looking statements notice

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as “anticipate,” “believe,” “intend,” “plan,” “project,” “forecast,” “strategy,” “position,” “continue,” “estimate,” “expect,” “may,” “will,” “could,” “predict,” and similar expressions of the negative or other variations thereof. In particular, statements, expressed or implied, concerning the Company’s outlook and guidance for fourth quarter and fiscal year 2025 results, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the Company’s business strategy and strategic initiatives, the Company’s expectations regarding enterprise AI opportunities, anticipated growth in bookings, and the Company’s expectations regarding restructuring charges, stock-based compensation expense, amortization of intangibles, and capital expenditures, among others, are forward-looking statements. Although the Company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond the Company’s ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, and in any of the Company’s subsequent reports filed with the Securities and Exchange Commission. Events relating to the possibility of customer demand fluctuations, supply chain constraints, continuing inflationary pressures, the effects of foreign currency fluctuations and high interest rates, the continuing U.S. government shutdown and the economic impacts, volatility and uncertainty resulting therefrom, geopolitical uncertainties including continuing hostilities and tensions, trade restrictions and sanctions, tariffs and retaliatory countermeasures, the ability to utilize the Company’s manufacturing facilities at sufficient levels to cover its fixed operating costs, or write-downs or write-offs of obsolete or unsold inventory, may have resulting impacts on the Company’s business, financial condition, results of operations, and the Company’s ability (or inability) to execute on its plans. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of the Company’s operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the Company as of the date of this document, and the Company assumes no obligation to update.

Non-GAAP Financial Measures

Management discloses certain non‐GAAP information to provide investors with additional information to analyze the Company’s performance and underlying trends. These non-GAAP financial measures exclude restructuring charges, stock-based compensation expense, amortization of intangible assets acquired in business combinations, certain legal and other settlement losses (gains), customer insolvency losses (recoveries), asset impairments, other significant non-recurring costs and the related tax impacts, including discrete tax items and other non-GAAP tax adjustments, of all of the above. A detailed reconciliation between GAAP results and results excluding certain items (“non-GAAP”) is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance. This document also references “free cash flow”, a non-GAAP measure, which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software. The Company’s non‐GAAP information is not necessarily comparable to the non‐GAAP information used by other companies. Non‐GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company’s profitability or liquidity. Readers should consider the types of events and transactions for which adjustments have been made.

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2024	2025	2024	2025
Sales	$657,747	$680,678	$1,999,218	$1,954,777
Cost of sales	591,006	612,735	1,797,119	1,758,882
Gross profit	66,741	67,943	202,099	195,895
Selling, general and administrative expenses	36,636	41,520	111,990	120,889
Amortization of intangible assets	1,205	1,205	3,613	3,613
Restructuring charges and other costs	795	1,557	5,609	15,487
Income from operations	28,105	23,661	80,887	55,906
Interest expense	(6,569)	(4,418)	(20,747)	(16,061)
Interest income	2,811	1,955	7,329	7,822
Other expense, net	(3,952)	(608)	(7,452)	(2,076)
Income before income taxes	20,395	20,590	60,017	45,591
Income tax expense	5,021	6,327	15,113	26,712
Net income	$15,374	$14,263	$44,904	$18,879
Earnings per share:
Basic	$0.43	$0.40	$1.25	$0.53
Diluted	$0.42	$0.39	$1.23	$0.52
Weighted-average number of shares outstanding:
Basic	36,051	35,802	35,970	35,947
Diluted	36,629	36,182	36,469	36,337

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In Thousands)

	December 31,	September 30,
	2024	2025
Assets
Current assets:
Cash and cash equivalents	$315,152	$285,419
Restricted cash	12,875	642
Accounts receivable, net	412,458	377,978
Contract assets	167,578	199,007
Inventories	553,654	509,005
Prepaid expenses and other current assets	42,512	63,363
Total current assets	1,504,229	1,435,414
Property, plant and equipment, net	225,097	226,234
Operating lease right-of-use assets	117,995	106,436
Goodwill and other long-term assets	292,143	299,265
Total assets	$2,139,464	$2,067,349
Liabilities and Shareholders’ Equity
Current liabilities:
Current installments of long-term debt	$6,737	$3,782
Accounts payable	354,218	382,660
Advance payments from customers	143,614	124,164
Accrued liabilities	144,530	108,327
Total current liabilities	649,099	618,933
Long-term debt, net of current installments	250,457	212,622
Operating lease liabilities	108,997	101,801
Other long-term liabilities	17,598	24,733
Total liabilities	1,026,151	958,089
Shareholders’ equity	1,113,313	1,109,260
Total liabilities and shareholders’ equity	$2,139,464	$2,067,349

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In Thousands)

	Nine Months Ended
	September 30,
	2024	2025
Cash flows from operating activities:
Net income	$44,904	$18,879
Depreciation and amortization	34,578	35,629
Stock-based compensation expense	10,740	15,077
Accounts receivable	76,479	38,744
Contract assets	(11,559)	(31,429)
Inventories	102,540	48,547
Accounts payable	(16,107)	19,566
Advance payments from customers	(59,533)	(19,449)
Other changes in working capital and other, net	(38,733)	(60,276)
Net cash provided by operating activities	143,309	65,288
Cash flows from investing activities:
Additions to property, plant and equipment and software	(24,221)	(27,954)
Other investing activities, net	483	5,144
Net cash used in investing activities	(23,738)	(22,810)
Cash flows from financing activities:
Share repurchases	(5,101)	(25,994)
Net debt activity	(52,596)	(41,415)
Other financing activities, net	(23,507)	(25,508)
Net cash used in financing activities	(81,204)	(92,917)
Effect of exchange rate changes	2,843	8,473
Net increase (decrease) in cash and cash equivalents and restricted cash	41,210	(41,966)
Cash and cash equivalents and restricted cash at beginning of year	283,213	328,027
Cash and cash equivalents and restricted cash at end of period	$324,423	$286,061

Benchmark Electronics, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

	Three Months Ended			Nine Months Ended
	Sept 30,	June 30,	Sept 30,	Sept 30,
	2024	2025	2025	2024	2025
Income from operations (GAAP)	$28,105	$20,486	$23,661	$80,887	$55,906
Restructuring charges and other costs	795	1,939	1,211	5,609	4,492
Stock-based compensation expense	4,379	5,335	5,345	10,740	15,077
Amortization of intangible assets	1,205	1,204	1,205	3,613	3,613
Legal and other settlement loss	367	799	816	1,539	11,890
Other	-	311	358	-	668
Customer insolvency (recovery)	-	-	-	(316)	-
Non-GAAP income from operations	$34,851	$30,074	$32,596	$102,072	$91,646
GAAP operating margin	4.3%	3.2%	3.5%	4.0%	2.9%
Non-GAAP operating margin	5.3%	4.7%	4.8%	5.1%	4.7%
Gross profit (GAAP)	$66,741	$64,772	$67,943	$202,099	$195,895
Stock-based compensation expense	413	514	515	1,165	1,460
Customer insolvency (recovery)	-	-	-	(316)	-
Non-GAAP gross profit	$67,154	$65,286	$68,458	$202,948	$197,355
GAAP gross margin	10.1%	10.1%	10.0%	10.1%	10.0%
Non-GAAP gross margin	10.2%	10.2%	10.1%	10.2%	10.1%
Selling, general and administrative expenses	$36,636	$40,569	$41,520	$111,990	$120,889
Stock-based compensation expense	(3,966)	(4,821)	(4,830)	(9,575)	(13,617)
Legal and other settlement loss	(367)	(225)	(471)	(1,539)	(896)
Other	-	(311)	(357)	-	(668)
Non-GAAP selling, general and administrative expenses	$32,303	$35,212	$35,862	$100,876	$105,708
Net income (GAAP)	$15,374	$972	$14,263	$44,904	$18,879
Restructuring charges and other costs	795	1,939	1,211	5,609	4,492
Stock-based compensation expense	4,379	5,335	5,345	10,740	15,077
Amortization of intangible assets	1,205	1,204	1,205	3,613	3,613
Legal and other settlement loss	367	799	816	1,539	11,890
Refinancing of Credit Facilities	-	224	-	-	224
Other	-	311	357	-	668
Customer insolvency (recovery)	-	-	-	(316)	-
Income tax adjustments	(1,406)	9,208	(905)	(4,236)	6,658
Non-GAAP net income	$20,714	$19,992	$22,292	$61,853	$61,501
Diluted earnings per share:
Diluted (GAAP)	$0.42	$0.03	$0.39	$1.23	$0.52
Diluted (Non-GAAP)	$0.57	$0.55	$0.62	$1.70	$1.69
Weighted-average number of shares used in calculating diluted earnings per share:
Diluted (GAAP)	36,629	36,258	36,182	36,469	36,337
Diluted (Non-GAAP)	36,629	36,258	36,182	36,469	36,337
Net cash provided by (used in) operations	$39,036	$(2,823)	$36,608	$143,309	$65,288
Additions to property, plant and equipment and software	(9,814)	(12,304)	(11,494)	(24,221)	(27,954)
Free cash flow	$29,222	$(15,127)	$25,114	$119,088	$37,334

Includes settlement of the tax assessment in Mexico that was previously disclosed under Note 15 in Part II, Item 8 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

This amount represents the tax impact of the non-GAAP adjustments, including discrete tax items, using the applicable effective tax rates. For the three and nine months ended September 30, 2025, $0.8 million and $11.3 million, respectively, in discrete tax charges relating to foreign withholding tax paid on repatriated dividends, net of anticipated recoveries, and the recognition of deferred tax liabilities on remaining unremitted earnings in China.